Fire Insurance Premium Calculator

Work out fire insurance premium instantly with clear inputs, formula shown and shareable results.

About Fire Insurance Premium Calculator

Fire insurance is rated per mille of sum insured, with the rate driven by the occupancy hazard class. Add-on perils such as storm, flood and earthquake load the rate, while installed protection — sprinklers, hydrants, detection — earns a substantial discount.

Formulas

Base premium

Base = Sum insured x Occupancy rate per mille / 1,000

Premium

Premium = Base x (1 + Add-on perils %) x (1 - Protection discount %)

Worked example

With the default values below, Fire Insurance Premium Calculator returns Annual fire premium of $26,180.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Sum insured: 50,000,000
Occupancy hazard classone of Light hazard (office, dwelling), Ordinary hazard (retail, workshop), Extra hazard (chemical, timber): Light hazard (office, dwelling)
Discount for sprinklers and fire protection: 15
Loading for add-on perils (STFI, earthquake): 12

Results

Annual fire premium: $26,180.00
Base premium at the occupancy rate: $27,500.00
Discount for fire protection: $4,620.00
Effective rate per 1,000 sum insured: 0.5236

Step by step

1Values used
2Base premium
3Premium
4Annual fire premium= 26,180.00
5Base premium at the occupancy rate= 27,500.00
6Discount for fire protection= 4,620.00
7Effective rate per 1,000 sum insured= 0.5236

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax or compounding frequency into account.
Figures are rounded for display to 4 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
Indicative estimate only. Fees, entitlements, limits and formulas vary by jurisdiction, statute, policy wording and the facts of the case. This is not legal, tax, insurance or financial advice — confirm with a qualified professional or the relevant authority.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Indicative estimate only. Fees, entitlements, limits and formulas vary by jurisdiction, statute, policy wording and the facts of the case. This is not legal, tax, insurance or financial advice — confirm with a qualified professional or the relevant authority.

Frequently Asked Questions

Why does occupancy matter so much?

Because ignition sources and fire load differ enormously. A timber workshop can be five times the rate of an office in the same building type.

Do sprinklers really pay for themselves?

Often yes, through premium discount alone over several years, before counting the reduction in actual loss and business interruption.